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Government examines ambassador's severance pay
The UK Foreign Office is reviewing a financial settlement awarded to Lord Peter Mandelson following his dismissal as ambassador to the United States last September. The move comes amid fresh disclosures about his communications with convicted sex offender Jeffrey Epstein and an ongoing police probe in Britain.
Pressure mounts for repayment
Sources within Downing Street have urged Mandelson to return the estimated £40,000 payout or donate it to a charity supporting victims. The sum reportedly equals three months' salary for the ambassador role, which typically pays between £155,000 and £159,999 annually.
Work and Pensions Secretary Pat McFadden echoed these calls during a Sunday interview, stating Mandelson should "either return the money or give it to an appropriate charity."
Epstein ties trigger dismissal and investigation
Mandelson's connections to Epstein were known when he was appointed ambassador in December 2024. However, he was removed from the post after new details emerged about the extent of their relationship, including emails showing supportive messages sent to Epstein during his 2008 sex crime charges.
The Metropolitan Police launched an investigation into allegations of misconduct in public office after searching two properties linked to Mandelson on Friday. The probe follows the release of US government files containing email exchanges between Mandelson and Epstein.
"This will be a complex investigation requiring a significant amount of further evidence gathering and analysis. It will take some time to do this work comprehensively and we will not be providing a running commentary."
Deputy Assistant Commissioner Hayley Sewart
Emails reveal policy discussions
Among the newly released documents is an email suggesting Mandelson informed Epstein in advance about a €500 billion EU bailout to stabilize the euro in 2010. Another 2009 memo from Gordon Brown's policy adviser Nick Butler discussed selling government assets to address economic struggles.
Mandelson's legal team has not commented, but sources indicate he maintains no criminal wrongdoing and denies financial motives.
Parliament demands transparency
The Foreign Office confirmed a settlement was reached but did not disclose the amount. A spokesperson stated Mandelson's employment was terminated "in accordance with legal advice and the terms and conditions of his employment," with standard HR processes followed.
Parliament voted last Wednesday to require ministers to release government files and communications related to Mandelson's tenure as ambassador. The Cabinet Office is coordinating the response.
